Finance news from Loans Park

London (loans-park) February 08, 2006: The latest business trends report from the accountancy firm BDO Stoy Hayward suggest a brighter year for the UK economy in 2006. UK’s GDP is predicted to rise by 2% in the first quarter of 2006 and by 3% in the second.

The report also expects the interest rates to remain on hold until the spring. However, inflation is expected to follow a downhill journey.

A strong combination of stabilising house prices and cooling oil prices suggest that consumer confidence will improve in 2006. This in return is expected to pave way for retail recovery.

The report also predicted the interest rate to be cut to 4.25% by the end of the year giving a much-needed boost to consumer’s confidence.